Monoswap, a small DEX on layer 2 Blast, announced today that it was hacked under suspicious circumstances. The team attributed the loss from this DEX's staking liquidity pools to a phishing attack that installed malware on the computer of an independent developer.
The team recommends users withdraw all remaining funds and avoid using the protocol while they are working to deploy new smart contracts.
This security flaw reduced the exchange's total value locked (TVL), which peaked at $2.8 million in April.
According to the description, some people believe that this attack seems to be easily preventable. The Monoswap team will need to explain why their contracts are so fragile in the first place.
The level of incompetence said to have been displayed naturally has led some to suspect internal interference, although there is currently nothing clear to point to that conclusion.
End of phase 1 of Blast
The past two months have not been good for Blast. Network-wide TVL has halved and activity is down about 35% from the June peak, indicating divestment and users enticed by airdrop farming.
For early adopters of the Blast rollup, a fork of Optimism – “Phase 1” – ends on June 26 with a BLAST token airdrop.
BLAST is down -25% this week and about -45% since launch, while bitcoin is up about 6% over the same period.
“Phase 2” of the project, introduced on July 2 and detailing a 12-month bonus season, failed to stem the decline to a local bottom around $0.013 on July 5.
According to the proposal, next year's rewards will be split equally between “Points” and “Gold,” with Points earned based on balances of ETH, USDB – an interest-bearing stablecoin similar to sDAI – and BLAST. Using native interest-bearing assets is Blast's specialty but the BLAST token lacks any kind of utility – giving it no reason to hold.
“Gold” refers to a type of reward given within the Blast network, used as an incentive mechanism primarily for developers and early adopters of dapps on this rollup.
Among the many unique incentive programs, “Big Bang” competitions aim to incubate new dApps, which must distribute existing Gold before receiving additional allocations.
“Golden Tickets” – designed to encourage active participation and interaction with dApps – continue to offer users the opportunity to earn Points, Gold and other rewards.
All of this suggests that the market expects more in the short term from marketing specialist Pacman, who attracted hundreds of millions of dollars in deposits to the tesnet network before starting construction in earnest.
Pacman has been criticized for focusing too much on short-term growth spurs and overlooking the concept of DAO governance.
In response, an improved Blast proposal enabled double Points for BLAST holders. The token was also added as collateral on the Blast-based DEX Blitz on July 19.
This chain remains a leading optimistic rollup by TVL and operations, and recently added Across Protocol as a faster bridge option. This is a mobile-focused layer 2 bet aimed at attracting a pool of retail players. Whether that is a recipe for longevity remains to be seen.
Source: https://tapchibitcoin.io/monoswap-bi-hack-va-cac-thach-thuc-tai-chinh-cua-layer-2-blast.html